Buying a home is one of the most exciting things anyone can do. Not only are you upgrading from what you previously had, but you are now setting down roots. Once you find that ideal home in the neighborhood of your choosing, you start the homebuying process.
With fees on both the seller and homebuyer’s side, it is easy to get lost in all of the costs associated with selling or buying a home. Not to mention, there may be a chance that the home you want to buy or sell has a lien or a judgment against it.
That is where title insurance kicks in. It is a type of coverage that can benefit you and your lender. Now, just who pays for title insurance in Florida?
Why don’t you read this article to find out? In this brief Florida title insurance guide, we will cover who is responsible for the title insurance in Florida. We will also go over an alternative option available for you if you sell or buy a home.
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What is title insurance?
Before we dive into who pays for title insurance in Florida, let’s get into what title insurance even is. Title insurance is a type of indemnity insurance put in place to protect the homebuyer and the lender.
There are two different types of title insurance, which we will get into later.
The main reason title insurance exists is to help prevent you from purchasing a home from someone who is not legally the owner of the house. The purpose of this insurance is to provide protection to ensure that you have protection from a financial loss due to a known or unknown circumstance.
What is a title search?
Whether you are the home seller or home buyer, you will have to undergo a title search. When you purchase a home, your lender will most likely request a title search for the home you wish to buy.
Most people assume that the home seller has legal rights to the house, but that is not always true. A title search will help you understand who the home’s legal owner is and if there are any liens or judgments against the house.
Florida title insurance tips
In Florida, a title company or an attorney will conduct the title search on your behalf. In some instances, the lender or the home buyer will take over the title search process.
If the homebuyer decides to take on the search, they will need to check out the records at the local county courthouse, county assessors office, or recorder’s office. It is best to let the professionals handle the search to avoid missing any critical information.
Who pays for title insurance in Florida?
In the state of Florida, the party responsible for purchasing title insurance depends on the county. Naturally, the seller will pay for the title insurance in most of the counties in Florida except for a few.
Counties where the buyer pays for title insurance:
- Collier County
- Sarasota County
- Broward County
- Miami-Dade County
If you are in a county where you need to pay for the title insurance, make sure to reach out to the seller. You may be able to negotiate who pays for the title insurance.
Florida title insurance, who pays?
As mentioned earlier, it depends on which county you live in when determining who pays for Florida title insurance. The type of title insurance purchased also determines who pays what.
For example, the owner’s title insurance protects the homebuyer’s equity in the home. If someone later tries to sue you about a claim made against the house before you purchased it, this insurance will protect you. The most common claims are from past due taxes or from contractors who did not receive payment for their work.
Lender’s title insurance
Lender’s title insurance is the second type of title insurance available to purchase. This title insurance protects the lender’s interest in the money they loan. It is important to note that you review with the lender before you buy any type of title insurance. In Florida, the lender must approve the title agency.
How to pay for title insurance
Unlike your mortgage or homeowner’s insurance policy, you won’t have to pay your title insurance premium each month. You will pay for your title policy upfront, and the insurance is good as long as you or your family owns the home.
How much is title insurance
The cost of title insurance depends on the price of your home. For example, the typical rate is around $5.75 per every thousand dollars up to $100,000.
If you are looking for million-dollar coverage, you can expect to pay approximately $5.00 for every thousand. The best part about the rates for the title insurance is that you won’t have to go shopping around for a better deal. The Florida Department of Financial Services regulates the title insurance companies, so fees will always stay consistent.
Florida title insurance advice
Did you know that there is an alternate way to sell your home instead of going the traditional route? If you want to, you have the option to sell your house to an iBuyer.
The best part about selling to an iBuyer is that they take care of the entire home buying and selling process on your behalf. You just get to look forward to receiving an all-cash offer on your home.
What is an iBuyer?
An iBuyer is a company with excellent financials and AI to generate and provide you with an all-cash offer. The “i” in iBuyer stands for an instant buyer. These companies utilize cutting-edge artificial intelligence to create that all-cash offer on your home.
How to sell to an iBuyer
If you decide that you want to sell your home to an iBuyer, just know there are only a few easy steps you need to take! Keep in mind that there are several different iBuyer companies throughout the United States.
There are some that operate at a national level and others that are smaller and more local to you. Make sure that you do your research on an iBuyer before you commit to any offers. It is also best to compare the different iBuyer companies to ensure that you receive the best terms and offers.
1. Request an offer from an iBuyer
Once you have found an iBuyer, you will need to send in a request. The iBuyer will need some information about your home, and they will also need your contact information. If your home meets their requirements, they will send you an offer within 48 hours.
2. Review the offer
The iBuyer will provide you with an offer that shows your net proceeds. If there are any transaction fees or closing costs, they will include that in the offer.
Once you receive the offer, you have about five days to make your final decision. Keep in mind that the offer has no obligations. You have every right to deny the offer if you do not want to go through with the process.
3. Accept the offer
If you decide to accept the offer, the iBuyer will need to come to inspect the home. They want to ensure that your home does not require any significant repairs and that your home matches what you input in the application.
If there are any repairs needed, they will let you know as soon as they can after they finish inspecting the home. You won’t need to pay for these repairs out of pocket; the iBuyer will deduct the repair amount from your net proceeds. They will also handle those repairs when you move out of the home.
4. Choose your closing day
With repairs out of the way, you can go ahead and choose the day you want to close! Most iBuyers give you up to two months to close on the sale and move out.
If you want to move out sooner, that choice is yours! After you close on the home, you will receive a payment within a few days. If you are interested in buying a home while selling your home to the iBuyer, you can work with the iBuyer to do that for you.
Sell your home with ease
Now that you know who pays for title insurance in Florida, it is time to hand that responsibility to someone else. Sure, you could have a real estate agent negotiate on your behalf about paying these fees, but if you want to sell your home quickly, you should consider an iBuyer.
Submit your address now if you are ready to take that next step and sell your house to an iBuyer with no obligations. We have iBuyers who operate in several different market areas, including the areas in the sunshine state of Florida!